| Following a request from the Bank of Israel, the Minister of Finance and Minister of Industry, Trade and Labor, Mr. Ehud Olmert, yesterday issued an order removing control over the fees that banks may charge for cash withdrawals from ATMs located more than 500 meters from their branches. The fee for cash withdrawals from ATMs close to branches––NIS 1.21 per withdrawal––remains under control. |
| The issue of this order is part of the Bank of Israel's efforts to widen the distribution of ATMs, including to outlying areas where till now it was not worth while installing them. Locating ATMs far from a branch involves higher operating costs due to the distance, such as the costs of transporting money and servicing and securing the machine. In such locations it is preferable to allow a slightly higher fee to be charged rather than deny the public the possibility of withdrawing cash from an ATM. |
| The change in the Prices Order (Partial Removal of Control over Fees for Cash Withdrawals from ATMs, 5765–2005) should increase competition between banks and other companies expected to enter into this field and to widen the distribution of ATMs in locations that are remote from a branch of a bank and in outlying areas. |
| The Banking Supervision Department also intends to issue a directive under the Proper Conduct of Banking Business that will require banks to install ATMs in the exterior wall of their branches or in their vicinity, and to continue charging the controlled price of NIS 1.21 per withdrawal. |